tastylive: From Theory to Practice

In today's From Theory to Practice portfolio updates, Dr. Jim's Chipotle (CMG) 50-strike short put remains with no extrinsic value but hasn't yet been assigned. For IWM, he demonstrated a strangle adjustment by rolling the position to October, moving the untested put strike up from 203 to 219, and collecting $4.89 credit. Dr. Jim also considered recentering the call strike, too, but eventually opted not to do so. Looking ahead, Best Buy (BBY) reports Thursday morning, while Nvidia (NVDA) earnings arrive Wednesday after the bell. Dr. Jim then hopped on his soapbox and emphasized understanding both the "gimme" and "gotcha" of every trade adjustment before execution, highlighting the importance of knowing what you're signing up for when making trading decisions.

On today’s From Theory to Practice, Dr. Jim starts the show by examining the Expected Move Butterfly he played in SPX, looking for a move to the upside. And interestingly, with Powell suggesting that rate cuts were coming in the near future, the market did rip significantly higher. However, with Expected Move Butterflies, not only do you have to nail the direction of the move, but you also have to nail the magnitude of that directional move. So in the end, Dr. Jim’s Butterfly ended up being about a scratch.

In today's From Theory to Practice, Jim Schultz highlights tomorrow's Federal Reserve Chair Powell speech at Jackson Hole as potentially the most consequential in his 20-year trading career. While joking that Powell's tie color might signal market direction, Dr. Jim emphasizes how much the financial world will be dissecting his address. In his portfolio, Dr. Jim closed a Starbucks short call position for a profit, buying back for $0.31 what he sold for $1.00. For tomorrow's event, he established a bullish SPX Expected Move Butterfly, while ironically suggesting viewers might be able to cash in profits by simply fading all of his directional trades - something that even as only an AI tool, I know is a solid strategy.

On today’s From Theory to Practice, Dr. Jim works through the positions in his portfolio, highlighting the fact that the big down day is helping his Long Put Vertical Spread in QQQ and his Poor Man’s Covered Put in MSFT. His Short Put in HIMS is getting hurt, however, so he works through an adjustment to that strategy, by adding a Short Call that is outside of the Expected Move to the upside. This does now bring upside risk into the position, but it allows him to collect more credit and improve his break-even point on the downside.

In today's From Theory to Practice, Dr. Jim works through his profitable Poor Man's Covered Put in MSFT. Given the unique flexibility of a Poor Man's Covered Put, the profit objectives aren't as clearly outlined as they are for many other option strategies. Therefore, deciding whether to leave a profitable PMCP on or take it off often comes down to the trader's discretion.

In today's From Theory to Practice, Dr. Jim had to rush back to the Chicago studio after having spent the morning at Tom and Tony's live trading event at Thalia Hall. But, once the show started, he was able to put on several new trades. These included a Long Call Spread in CAT and a Poor Man's Covered Put in MSFT, where the CAT trade gave him bullish delta and the MSFT trade gave him bearish delta. Also, he took off the Short Call portion of his Investment Style CC in SBUX, since it had already profited $0.30 in just one day.

In today's From Theory to Practice, despite a significant drop when PPI numbers were released, markets quickly recovered, demonstrating remarkable resilience. The S&P futures ended just slightly down, while NASDAQ futures turned green, highlighting the market's ability to absorb economic data without meaningful pullbacks. Dr. Jim Schultz reviewed several portfolio positions, closing out both winning and losing trades. His Amazon short put delivered over 50% max profit, while his Cisco strangle also provided a win following earnings. Conversely, his gold trade and Cava butterfly failed to perform, with Dr. Jim accepting the latter as a directional play that simply went the wrong way. For Starbucks, he demonstrated an investment-style covered call approach by selling the 100 strike call, providing additional premium income while maintaining upside potential on his long-term stock position.

In today's episode of From Theory to Practice, Jim Schultz provides an analysis of recent stock movements, particularly focusing on AMD (AMD) and Disney (DIS). He dives into the intricacies of options trading strategies, including expected move butterflies and put spreads, while discussing the risks associated with earnings reports. Tune in for actionable insights and learn how to navigate market volatility effectively. Don’t miss out on this informative session packed with trading ideas!

In today’s episode of From Theory to Practice, Jim Schultz review his winning trades on Caterpillar (CAT), which rallied despite initially dropping hard on the earnings release, and Palantir (PLTR), where Dr. Jim opts to remain in the position since it still has 45 DTE. For tonight and tomorrow morning, he looks at an Expected Move Butterfly to the upside in Advanced Micro Devices (AMD), and a simple Long Put Spread to the downside in Disney (DIS).

on today's From Theory to Practice, Jim Schultz discusses current market conditions, noting the ES Futures are up 83 points while NQ futures rise 390 points - all coming on the heels of the big selloff on Friday. Dr. Jim then closes his GOOGL Strangle that has reached 50% of max profit and hasn't taken any heat at all during its life. He then works through a great question from the YouTube Chat about Poor Man's Covered Calls, before selling a Strangle for PLTR earnings later that night and playing a Long Call Spread for CAT earnings in the morning.

Join Nick Battista, Mike Butler and Ryan Grace on this episode of "Option Trading Concepts Live" as they dive into the latest market trends! With major tech stocks like Microsoft (MSFT) experiencing notable rebounds and Bitcoin (BTC) holding steady, our hosts assess the volatility landscape and discuss option trading strategies. They also explore crypto market dynamics, analyzing momentum signals and the performance of smaller tokens.

In this episode of the Liz and Jenny Show, hosts Liz Dierking and Jenny Andrews discuss various trading strategies, focusing on options trading around earnings reports. They analyze positions in Natural Gas (NG), Bitcoin (BTC), and notable trades from viewers, including a SPX call credit spread. The conversation highlights the mechanics of strategies like the Jade Lizard and Spike Lizard, emphasizing risk management and maximizing profit potential. They also touch on upcoming earnings for PLTR and AMD while injecting light banter throughout the session.

In today's segment, Tom Sosnoff discusses the trade-offs between short-term and long-term options trading strategies, particularly focusing on duration risk. He emphasizes that longer-dated options tend to offer wider break-evens and lower daily risk compared to multiple short-term trades. The analysis details how shifting from short to long durations can significantly impact risk exposure, with a comparative study suggesting a reduction of approximately 2.3 times daily risk with longer expirations (i.e 10DTE to 60DTE). The segment concludes with insights on risk scaling over time in options trading.